IMF Warns AI Will Impact 40 Percent of Global Jobs
IMF Managing Director Kristalina Georgieva warned that artificial intelligence will eventually touch roughly 40% of global jobs, with young workers hit first.
Artificial intelligence investment is keeping global economic growth near 3% annually despite ongoing energy shocks, according to International Monetary Fund Managing Director Kristalina Georgieva. Speaking in Bangkok on the opening day of the IMF and World Bank annual meetings, Georgieva described AI as a slow-moving tsunami that will eventually touch about 40% of jobs worldwide.
Impact on Labor and Young Workers
Instant Telegram notifications for large on-chain moves.
Georgieva noted that exposure to artificial intelligence reaches roughly 60% in advanced economies and about 23% in low-income countries. Young people entering the workforce are first in line to be affected because AI is absorbing the routine tasks upon which entry-level jobs are built. Singapore President Tharman Shanmugaratnam added that demand for graduates' first jobs is already falling, warning that the technology could widen the gap between rich and developing economies without government intervention.
Regional Growth and Hardware Supply Chain
The primary economic beneficiaries of the AI boom are Asian economies producing the underlying hardware. According to the IMF's July outlook, the top four net exporters of AI hardware—Taiwan, South Korea, Thailand, and Malaysia—surpassed first-quarter growth forecasts by an average of 4.4% on an annualized basis. South Korea grew at a 7.5% pace compared to a 1.8% projection from the Fund in April. Georgieva stated that high-end adoption could add between 0.5 and 1 percentage point annually to growth in advanced economies, and 0.2 to 0.8 points in emerging regions.
Key facts
- IMF Managing Director Kristalina Georgieva stated AI will eventually impact about 40% of jobs worldwide and 60% in advanced economies.
- Global growth remains near 3% annually, supported by AI investment offsetting energy shocks.
- Top four net exporters of AI hardware include Taiwan, South Korea, Thailand, and Malaysia.
- South Korea recorded a 7.5% annualized growth pace, outperforming the IMF projection of 1.8%.
- The IMF is scheduled to release its full World Economic Outlook update on October 13.
Source: decrypt.co
This article is for information only and is not investment advice. BullishMarketCap news is produced with AI assistance from public sources and reviewed by our editors; see our editorial policy. Spotted an error? Tell us.
